System and methods for providing starter credit card accounts

ABSTRACT

A system and method for providing starter credit card products to selected customers of a credit card issuer is disclosed. Methods, systems and articles of manufacture consistent with the present invention enable a credit card issuer to identify a group of customers that may not eligible to obtain standard credit card products offered by the credit card issuer. The credit card issuer may rank these customers and present offers for starter credit card accounts with adjusted account parameters tailored to these customers. The credit card issuer monitors the activities of each starter card account during a trial period to determine whether each respective account has met predetermined criteria. Based on the results of the monitor process, the credit card issuer may adjust the parameters associated with each starter credit card account. The adjustment may include increasing a credit limit of the starter credit card account if the predetermined criteria has been met, or conversely, restarting the trial period if an account has not met the predetermined criteria during the trial period. Once a starter card account that meets selected criteria during the trial period will graduate and receive new parameters and benefits defined by the credit card issuer.

DESCRIPTION OF THE INVENTION

1. Field of the Invention

This invention relates to credit card products and to systems andmethods for providing and using such products. More particularly, theinvention relates to systems and methods for providing starter creditcard accounts to high credit risk customers that are monitored during atrial period.

2. Background of the Invention

Credit card products have become so universally well known andubiquitous that they have fundamentally changed the manner in whichfinancial transactions and dealings are viewed and conducted in societytoday. Credit card products are most commonly represented by plasticcard-like members that are offered and provided to customers throughcredit card issuers (such as banks and other financial institutions).With a credit card, an authorized customer or cardholder is capable ofpurchasing services and/or merchandise without an immediate, directexchange of cash. With each purchase, the cardholder incurs debt totheir credit card account, which the cardholder may thereafter pay uponreceipt of a monthly or otherwise periodic statement. In most cases, thecardholder will have the option to either fully pay the outstandingbalance or, as a matter of necessity or choice, defer at least a portionor the balance for later payment with accompanying interest or financecharges for the period during which payment of the outstanding debt isdeferred (also referred to as a revolving charge credit line).

The spending power of a credit card (i.e., the maximum amount of fundsthat is financed to the cardholder for making purchases) is typicallylimited to a particular amount that is predetermined by the issuer ofthe card. This amount is commonly referred to as the “credit limit” ofthe credit card. The credit limit provides the cardholder with a line ofcredit (also referred to as a credit line). The size of theissuer-imposed credit limit is generally based on a number ofnon-exclusive factors, the most important of which are often thecardholder's earning capacity and the cardholder's credit history. Whenpurchases are made or debts incurred with the credit card, the availableportion of the credit limit is reduced by the purchase or debt amounts.In addition, interest and/or finance charges are also subtracted fromthe available portion of the credit limit on a periodic basis. The totaldebits on a credit card are referred to as the “outstanding balance,”while the remaining or available balance of the credit limit istypically called the “available balance” and reflects the dynamicallyadjusted current spending power of the credit card. The cardholder mayincrease the available balance up to the credit limit, by paying theoutstanding balance to the issuer.

Although the financial benefits of possessing credit card accounts areobvious, the disadvantages of abusing such accounts are sometimeoverlooked by cardholders. Mismanagement of credit card accounts (not tomention other types of financial accounts such as mortgages, vehicleloans, etc.) can result in a credit profile that creditors, includingcredit card issuers, view as high risk. A high risk credit profile mayprevent that individual from receiving credit card products from acredit card issuer. This not only affects the individual in a negativemanner (e.g., the loss of potential spending power, but the credit cardissuer as well (e.g., the loss of a potential customer).

SUMMARY OF THE INVENTION

It is therefore desirable to have a method and system that enables acredit card issuer to provide starter credit card accounts to customerswho have credit profiles that prevent them from obtaining standardcredit card accounts.

Methods, systems and articles of manufacture consistent with the presentinvention enable a credit card issuer to identify a group of customers(or potential customers) that are not eligible to obtain standard creditcard products offered by the credit card issuer. The credit card issuermay rank the customers included in the group based on predeterminedcriteria, such as credit history and earning capacity. Once the creditcard issuer has ranked the group of customers, various offers for astarter credit card account are presented to each customer, based ontheir ranking. Subsequently, starter credit card accounts are providedto those customers who have accepted the offers. The starter credit cardaccounts are associated with predetermined parameters that are designedparticularly for the identified customers, and may include, for example,interest rates of zero percent, and reduced credit limits.

Additionally, methods, systems and articles of manufacture enable thecredit card issuer to set a trial period for each starter credit cardaccount and perform a process that monitors the activities of eachaccount during the trial period to determine whether each respectivecustomer has met predetermined criteria. In one aspect of the invention,the predetermined criteria may be a number of consecutive on-timemonthly payments.

Based on the results of the monitor process, methods, systems, andarticles of manufacturer adjust the parameters associated with eachstarter credit card account. In one aspect of the invention, theadjustment may include increasing a credit limit of the starter creditcard account if the predetermined criteria has been met. In anotheraspect of the invention, if a customer has not met the predeterminedcriteria during the trial period, the adjustment may include restartingthe trial period, and removing the customer from the group of customers.Eventually, a customer who meets selected criteria during the trialperiod may even be able to graduate to obtain a standard credit cardaccount with standard parameters and benefits associated with thesetypes of accounts.

Accordingly, methods, systems, and articles of manufacturer, enablecustomers included in the group of identified customers to have anopportunity to improve their credit profile, while at the same timeobtain a line of credit that can be used to purchase goods and/orservices that normally would not have been obtainable. Moreover,methods, systems, and articles of manufacturer, enable credit cardissuers to retain individuals who normally would have been lost aspotential customers based on their credit profile, while at the sametime minimizing the risk of providing credit card accounts to high riskcustomers by controlling the parameters associated with these accounts.

Additional advantages of the invention will be set forth in part in thedescription which follows, and in part will be obvious from thedescription, or may be learned by practice of the invention. Theadvantages of the invention will be realized and attained by means ofthe elements and combinations particularly pointed out in the appendedclaims. It is to be understood that both the foregoing generaldescription and the following detailed description are exemplary andexplanatory only and are not restrictive of the invention, as claimed.

BRIEF DESCRIPTION OF THE DRAWINGS

The accompanying drawings, which are incorporated in and constitute apart of this specification, illustrate several embodiments of theinvention and together with the description, serve to explain theprinciples of the invention. In the drawings,

FIG. 1 illustrates an exemplary block diagram of an environment fromwhich methods and systems consistent with features and principles of thepresent invention may be implemented;

FIG. 2 illustrates an exemplary block diagram of a credit card issuerand central database, consistent with features and principles of thepresent invention;

FIG. 3 illustrates an exemplary flowchart of a process to determinetarget customers, consistent with features and principles of the presentinvention;

FIG. 4 illustrates an exemplary flowchart of front-end and downsellprocesses, consistent with features and principles of the presentinvention;

FIG. 5 illustrates an exemplary flowchart of a monitor process,consistent with features and principles of the present invention;

FIG. 6 illustrates an exemplary flowchart of a first statement process,consistent with features and principles of the present invention;

FIG. 7 illustrates an exemplary flowchart of a second statement process,consistent with features and principles of the present invention;

FIG. 8 illustrates an exemplary flowchart of a third statement process,consistent with features and principles of the present invention;

FIG. 9 illustrates an exemplary flowchart of a fourth statement process,consistent with features and principles of the present invention;

FIG. 10 illustrates an exemplary flowchart of a fifth statement process,consistent with features and principles of the present invention;

FIG. 11 illustrates an exemplary flowchart of a sixth statement process,consistent with features and principles of the present invention;

FIG. 12 illustrates an exemplary flowchart of a seventh statementprocess, consistent with features and principles of the presentinvention; and

FIG. 13 illustrates an exemplary starter credit card account code table,consistent with features and principles of the present invention.

DETAILED DESCRIPTION

Methods, systems and articles of manufacture consistent with the presentinvention enable a credit card issuer to present starter credit cardproducts to customers who are ineligible for standard credit cardproducts. A target customer process identifies a group of customers thatare targeted for the trial starter card product. Once the group isestablished, the target customer process ranks the customers in thegroup based on a pre-selected criteria, such as their credit profile.Based on their ranking, a customer is offered a starter credit cardaccount with predetermined parameters for a predetermined trial period.The parameters may vary based on the ranking of a customer, and mayinclude, credit limits, interest rates, and penalty fees. Also, thecustomer may be notified of graduation parameters, which are parametersthat each customer may obtain if they meet certain criteria during thetrial period.

Once the applications have been received from trial customers who haveaccepted an offer for a starter credit card account, for the approvedapplications, a loader process loads starter credit card accountinformation, such as the parameters discussed above, into a targetcustomer database. The information loaded into this database may alsoinclude a type of starter credit card offer, or “product cell” that isassociated with each trial customer, account level messages, and paymentstatus for the account.

After a starter credit card account has been loaded into the targetcustomer database, a monitor process begins to monitor the activitiesassociated with each account. The activities monitored may include thetimeliness of monthly payments and whether a credit limit has beenexceeded. The monitor process may periodically check the status of eachstarter credit card account by using the loader process to accessinformation within the target customer database, and compare it tocurrent status information for each account. Based on the analysis, themonitor process determines whether the predetermined criteria for eachstarter credit card account has been met, or is on target to be met. Forexample, a customer who has made timely payments to the credit cardissuer for three consecutive months may be designated as a “graduated”customer, and the parameters associated with that customer's startercredit card account may change. In one aspect of the invention, thecustomer is taken off the trial period, and provided an upgraded creditcard account. This may include an increased credit limit and reducedpenalty fees.

On the other hand, if a customer does not meet the predeterminedcriteria associated with their starter credit card account, the monitorprocess may adjust the account's parameter's accordingly. In one aspectof the invention, the monitor process may give a delinquent customer a“second” chance by restarting the trial period and allowing the customerto try again to meet the predetermined criteria for their account. Onthe other hand, the monitor process may revoke the privileges of thestarter credit card account from a delinquent customer, and adjust theparameters of their account accordingly, such as decreasing the creditlimit, increasing the interest rate, and/or accessing penalty fees.

Methods, systems and articles of manufacture enable a credit card issuerto offer credit account products to high credit risk customers thatnormally would not be eligible to receive such products. In addition tothe availability of these types of products, customers may also benefitfrom tailored parameters associated with each credit account. A creditcard issuer (or other financial institution) may offer starter accountproducts that include little or no interest rates with manageable creditlimits to aid a customer in making timely payments. The credit cardissuer also benefits from the start credit account products. Newcustomers are marketed that may be trained to be more fiscallyresponsible. Although these new customers may be high credit risks, therisk is reduced by the tailored parameters associated with each startercredit account offered. That is, a credit card issuer may offer lowcredit limits that reduces the amount of loss to both the customer andcredit card issuer in the event the customer defaults on accountpayments. Therefore, as described above, and explained in further detailbelow, methods and systems consistent with features and principles ofthe present invention provide credit account products that arebeneficial to both the consumer and account provider.

Reference will now be made in detail to the exemplary embodiments of theinvention, examples of which are illustrated in the accompanyingdrawings. Wherever possible, the same reference numbers will be usedthroughout the drawings to refer to the same or like parts.

The above-noted features and other aspects and principles of the presentinvention may be implemented in various environments. Such environmentsand related applications may be specially constructed for performing thevarious processes and operations of the invention or they may include ageneral purpose computer or computing platform selectively activated orreconfigured by program code to provide the necessary functionality. Theprocesses disclosed herein are not inherently related to any particularcomputer or other apparatus, and may be implemented by a suitablecombination of hardware, software, and/or firmware. For example, variousgeneral purpose machines may be used with programs written in accordancewith teachings of the invention, or it may be more convenient toconstruct a specialized apparatus or system to perform the requiredmethods and techniques.

The present invention also relates to computer readable media thatinclude program instruction or program code for performing variouscomputer-implemented operations based on the methods and processes ofthe invention. The program instructions may be those specially designedand constructed for the purposes of the invention, or they may be of thekind well-known and available to those having skill in the computersoftware arts. Examples of program instructions include for examplemachine code, such as produced by a compiler, and files containing ahigh level code that can be executed by the computer using aninterpreter.

FIG. 1 illustrates an exemplary system environment 1000 in which thefeatures and principles of the invention may be implemented. Asillustrated in FIG. 1, the system environment 1000 may include aplurality of customers (1010-1030), a response vehicle system 1100including a plurality of different response vehicles (1110-1130), acredit card issuer 1200, a central database 1300 and a communicationschannel 1400.

Each customer in system environment 1000 is associated with a differentcustomer category. For instance, customer(s) 1010 may be web sitecustomer(s) that access and retrieve information through a web site.This web site may be a branded web site that is operated by one or morevendors, or may be a web site operated by the card issuer. Customer(s)1020 may be telephone customers that access and receive informationusing conventional telephonic communication techniques and systems. Thisincludes, for example, and wireless telephony systems. Customer(s) 1030may be conventional mail customer(s) that access and receive informationby conventional mail techniques and services. This includes, forexample, customer(s) that are part of a credit card issuer's mailinglist. Customer(s) 1010-1030 may also represent entities (such as anindividual, a group of individuals, corporate entities, or anycombination thereof), that hold credit card accounts with the creditcard issuer 1200. The categories of customer(s) illustrated in FIG. 1are exemplary and should not be considered limiting. For example, avariety of different customer categories may also be implemented inenvironment 1000, such as customers using kiosk computers or personaldigital assistants (PDAs).

Response vehicle 1100 represents a system for handling communicationsbetween the customer(s) 1010-1030 and credit card issuer 1200. Responsevehicle 1100 may be part of a credit card issuer's network and, as shownin FIG. 1, includes a plurality of response vehicles 1110-1130 thatcorrespond to different category groups of customer(s) 1010-1030. Eachresponse vehicle is responsible for handling communications to and froma particular customer. For example, telephone response vehicle 1120handles telephonic communications between the customer 1020 and creditcard issuer 1200. Thus, in the event credit card issuer 1200 wishes tosolicit customers telephonically, response vehicle 1120 includes thenecessary systems to support such operations. This may include acustomer service telephone line that allows a customer servicerepresentative to communicate with a customer 1020, in accordance withfeatures and principles of the present invention. Response vehicle 1130,on the other hand, includes the necessary systems and organizations tohandle conventional mail processing to and from customer(s) 1030.Furthermore, response vehicle 1110 may include any type of web serverhardware and software that handles requests and responses to/fromnetwork applications used by a computer system operated by customer1010. For example, website customer 1010 may by using a personalcomputer to access a web page maintained by a server system operated byresponse vehicle 1110.

Response vehicle system 1100 may receive responses from the customer(s)and forward them to card issuer 1200 for appropriate processing.Notifications to the customer(s) also are performed from issuer 1200 tothe customer(s) through response vehicle 1100. It should be noted thatthe present invention is not limited to the configuration and even useof the response vehicle 1100. Environment 1000 may be configured toaccept communications from customers 1010-1030 using other forms ofinterfaces that facilitate communications between the credit card issuerand the multitude of mediums customers may use to communicate in systemenvironment 1000.

Communication channel 1400 facilitates communications between thevarious customer(s) and response vehicle system 1100 illustrated inFIG. 1. Such communications may include communications related tooffering and issuing starter credit card products. Communicationschannel 1400 may include, for example, a telephony-based network, alocal area network (LAN), a wide area network (WAN), a dedicatedintranet, the Internet, and/or a wireless network. Further, any suitablecombination of wired and/or wireless components and systems may beincorporated into communications channel 1400. Any suitable combinationof point-to-point communications or networked communications may also beincorporated into communication channel 1400 to facilitate communicationbetween the different entities illustrated in FIG. 1. Moreover, any partof communication channel 1400 may implemented through traditionalinfrastructures or channels of trade, (e.g., the U.S. Postal System) topermit manual, automatic, or in-person communications between thevarious entities illustrated in FIG. 1.

Credit card issuer 1200 receives information from response vehiclesystem 1100 and processes it using central database 1300. Database 1300may contain various information including credit information, potentialcustomer lists, risk scores for potential extra credit customers,approved starter credit card customers, credit limits for approvedcardholders, customer information, purchase information, authorizationinformation, and/or settlement information. Issuer 1200 also sendsinformation to the response vehicle system 1100 for delivery to theappropriate customers. Credit card issuer 1200 is responsible forproviding various credit cards and establishing associated accounts.Credit card issuer 1200 may include one or more of the following: abank, an acquiring bank, a merchant bank, a merchant or any commercialinstitution capable of providing a credit card consistent with thefeatures disclosed herein. Further, although FIG. 1 only illustrates onecredit card issuer 1200, it is of course possible that more than onecredit card issuer be provided in system environment 1000.

To better describe the features and principles consistent with thepresent invention, FIG. 2 illustrates an exemplary block diagram ofcredit card issuer 1200 and central database 1300. As shown in FIG. 2,credit card issuer 1200 may include a target customer process 2100,monitor process 2400 and loader process 2500. Central database 1300 mayinclude two separate databases: starter card database 2200, and customeraccount database 2300. Starter card database may further comprise codedatabase 2220, target customer database 2240, rules database 2260 andproduct cell database 2280. It should be noted that the configuration inFIG. 2 is exemplary and not intended to be limiting. That is, althoughFIG. 2 shows separate processes within credit card issuer 1200, theseprocesses may be configured into a single process, or further separatedinto additional sub-processes that perform the functions associated withfeatures and principles of the present invention. The same is true forcentral database 1300. Although FIG. 2 shows two separate databases 2200and 2300, this configuration may be modified to accommodate a singledatabase or, alternately, a number of separate databases thatcollectively perform functions consistent with features and principlesof the present invention.

Target customer process 2100 may be configured to identify and grouptarget customers for starter credit card accounts provided by creditcard issuer 1200 consistent with features and principles of the presentinvention. Target customer process 2100 may also be configured tosolicit offers and receive responses to/from potential starter creditcard account customers and perform ranking functions that will bedescribed later with reference to FIG. 4. Additionally, target customerprocess 2100 may also configure the starter card accounts and initializeparameters associated with each customer's starter card account inaccordance with features and principles of the present invention.

Monitor process 2400 may be configured to perform a periodic (orcontinuous) analysis of starter card accounts during a predeterminedtrial period associated with each starter card account. This processwill be described later with reference to FIGS. 5-12. Monitor process2400 may also be configured to update the parameters and informationassociated with each starter card account based on the results of theanalysis of each account during the trial period.

Loader process 2500 may be configured to interact with target customerprocess 2100 and monitor process 2400 to transfer data to and fromcentral database 1300. Loader process 1200 may receive instructions orcommands from monitor process 2400 and/or target customer process 2100to access and modify selective information stored in any databaseincluded in central database 1300. Loader process 2500 may also beconfigured to transfer starter card account information stored instarter card database 2200 to customer account database 2300.Description of the interaction between loader process 2500 and the otherelements depicted in FIG. 2 will be further described later, withreference to FIGS. 3-12.

Central database 1300 may be configured to store credit card accountinformation for credit card issuer 1200. Central database 1300 may beimplemented as any type of memory device or configuration that enablescredit card issuer 1200 to perform the features and principlesconsistent with the present invention. As shown in FIG. 2, centraldatabase 1300 includes two separate databases: starter card database2200 and customer account database 2300. Starter card database 2200 maybe configured to store information associated with the starter creditcard accounts consistent with features and principles of the presentinvention. This may include, but is not limited to: (1) starter cardcode data, which may be stored in code database 2220; (2) starter cardaccount information, which may be stored in target customer database2240; (3) rule data, which may be stored in rules database 2260; and (4)product cell information, which may be stored in product cell database2280.

Starter card code data, which may be stored in code database 2220, maybe data representing particular types of actions and data associatedwith each starter card account. This information may be previouslydefined by credit card issuer 1200 and utilized by monitor process 2400and target customer process 2220 to associate each starter card customerwith specific actions and events that need to be performed by creditcard issuer 1200. The types of actions and data that may be representedin code database 2220 include, but is not limited to, account levelmessages that reflect a message to be presented to a starter cardcustomer, letter codes that reflect predefined letters or communicationsthat may be sent to a starter card customer, and call center actioncodes that reflect a particular type of message presented to call centerpersonal communicating with a starter card customer. Table I shows anexemplary list of account level messages (“ALMs”), Table II shows anexemplary list of letter codes, and Table II shows an exemplary list ofcall center action codes (McACTN), that each may be implemented bymethods and systems consistent with features and principles of thepresent invention. Further description of these codes and theirimplementation within system environment 1000 will be described later.

TABLE I ALM Message Codes ALM CODE MESSAGE A You will receive a creditline increase after <X> consecutive on-time payments. (Variable X: 3, 2more, or 1 more) B Congratulations! Because of your excellent paymenthistory during the trial period, your account terms have changed. Yournew credit limit is <XXX>. Changes to your account terms will bereflected on your next statement. (Variable XXX: CL—Credit Limit) C Youraccount is past due. As a result, your trial period is over. However,because you are a valued customer, we are offering you a second trialperiod with a introductory interest rate on purchases. D Your account ispast due. As a result, your trial period is over and your account termshave changed. These changes will be reflected on your next statement. EWelcome to CREDIT CARD ISSUER NAME. We hope you enjoy your trial periodwith an introductory interest rate on all purchases. And remember, whenyou make your minimum monthly payments on time, you will receive acredit line up to <XX> when the trial period ends. Variable XX: VariableCredit Line Increase based on product cell

TABLE II Letter Codes LETTER CODE TYPE OF LETTER A Retrial Letter-Presents information similar to ALM Code “C” B Graduation PASS Letter-Presents information similar to ALM Code “B” C Graduation FAIL Letter-Presents information similar to ALM Code “D”

TABLE III McACTN Codes McACTN CODE MESSAGE FOR CALL CENTER A CustomerEnrolled in Trial Program B Trial Failed. New Trial Granted C TrialPassed. Graduated to New Terms D Trial 2 Failed. Graduated to New Terms

Starter card account information, stored in target customer database2240, may include account information for each starter card customer.The starter card account information may be configured as a databasereflecting each starter card customer, and associated parametersassociated with each respective starter card account. The parameters mayrepresent, for example, statement codes that reflect the trial stageperiod a particular customer is currently within, account level messagecodes, letter codes, call center codes, product cell codes (which willbe described with reference to product cell database 2280), paymentstatus codes that reflect whether a respective customer has made timelypayments, and graduation codes that reflect whether a respectivecustomer has met trial period criteria associated with their startercard account. It should be noted, that additionally parameters may beincluded or removed from the target customer database 2240, withoutdeparting from the scope of the present invention.

Rules database 2280 may store rule data that reflects particular actionsand operations that monitor process 2400 may perform during an analysisof each customer's starter card account. For example, the rules data mayreflect what codes to modify in the target customer database 2240 basedon the results of an analysis performed on a starter card account.Target customer process 2100 may also use rules database 2260 toinitialize values for each customer in target customer database 2240.

The product cell data stored in product cell database 2280 may reflectparticular parameters associated with an offered starter card account.These parameters may include, but is not limited to, starter credit cardcredit limits, interest rates, trial period information, maintenance feedata, penalty fee data, and credit limit increase values. Product cellsmay be separated into a selected number of cells that include differentstarter credit card account parameters. Each product cell may bedesignated for particular types of starter card customers, based ontheir credit ranking, or credit profile. Each product cell maycorrespond to a particular financial product offered by a credit cardissuer and how that product is marketed. Table IV shows an exemplarylist of various product cells and their associated parameters,consistent with features and principles of the present invention.

TABLE IV Product Cell Codes Product Trial Trial GRAD. Cell Trial TrialTrial Late OL GRAD. GRAD. GRAD. Penalty (Copy Version) CL APR % MMF FeeFee CL APR % MMF Fees 1 $300 0 $0 $10 $0  $400–$1000 14.9 $6 Regular (A)2 $300 0 $0 $10 $0  $400–$1000 14.9 $6 Regular (B) 3 $400 0 $0 $10 $0$500–$700 19.8 $6 Regular (C) 4 $100 0 $0 $15  $10 $200–$500 19.8 $6Regular (D) 5 $50  0 $0 $20  $10 $200–$300 20.0 $6 Regular (C) 6 $200 0$0 $15 $0 $300–$700 18.5 $6 Regular Phone Call

As shown in Table IV, each product cell include parameters that varybased on the type of cell. The trial CL parameter reflects a creditlimit during a trial period for the starter card account. The trial APR% parameter reflects an annual percentage interest rate associated withthe starter card account during the trial period. The MMF parameterreflects a monthly membership fee assessed to the starter card accountduring the trial period. The trial late fee parameter reflects feesassessed to a starter card account is a late payment is received duringthe trial period, while the trial OL fee parameter reflects feesassessed to a starter card account when the trial CL parameter isexceeded during the trial period.

The GRAD. parameters reflect values that will be set when a starter cardaccount has graduated, or when a customer has met selected criteriaduring the trial period. For example, the GRAD. CL reflects a new creditlimit a starter credit card account will receive after graduation. TheGRAD. APR % reflects a new annual percentage interest rate the startercard account may receive. The GRAD. MMF parameter reflects monthlymaintenance fees that may be accessed to a graduated starter cardaccount. And, the GRAD. penalty fee parameter reflects the types of feesthat may be assessed to a graduated starter card account for overlimitand late payments after the trial period has ended.

Product cell 6, shown in Table IV, may reflect a product cell that isoffered only over telephonic mediums, while product cells 1-5 may beoffered though electronic mediums (such as the Internet and Web sites)as well as conventional mail mediums.

The Copy Version code associated with each product cell reflects a typeof message that may be included with an initial offer presented to apotential customer of the starter credit card product provided by creditcard issuer 1200. These versions may vary depending on the type ofmessage a credit card issuer wishes to convey. For exemplary purposesonly, Table V shows a list of copy version codes and their correspondingmessages.

TABLE V Copy Version Codes COPY VERSION CODE MESSAGE A Frontsell MessageMentions CL B Frontsell Message Does not Mention CL C DownsellMessage-Denial of initial account request, offer of Starter credit CardAccount- Mentions CL D Downsell Message-Denial of initial accountrequest, offer of Starter credit Card Account- does Not Mention CL

It should be noted that the information shown in Tables I-V are notintended to be limiting. That is, each of the parameters, messages, andproduct cells shown in Tables I-V may be defined and modified by creditcard issuer 1200 to reflect various types of such information that maybe associated with a starter card account consistent with features andprinciples of the present invention.

Referring back to FIG. 2, central database 1300 may also includecustomer account database 2300. Customer account database 2300 mayinclude starter credit card account information for each customer ofcredit card issuer 1200 associated with standard credit card accounts.Standard credit card accounts are associated with all types of creditcard accounts offered by a credit card issuer, other than the trialstarter card credit card accounts consistent with features andprinciples of the present invention. For example, this may include, butis not limited to, GOLD or PLATINUM type credit cards offered toselected customers. Standard credit card accounts may include terms,parameters, benefits, and/or conditions that are more favorable thanthose of a starter credit card account. More favorable parameters,terms, etc., may be considered more acceptable, and/or less financiallyrestrictive in comparison to other parameters, terms, etc., for examplethose associated with a starter credit card account. For example, acredit limit of $1500 may be considered more favorable than a creditlimit of $500. Also, a combination of parameters associated with astandard credit card account may be considered more favorable than acombination of parameters associated with a starter credit card account.For instance, a standard credit card account may be associated with acredit limit of $1500 and an interest rate of 19.5%. This combination ofparameters may be considered more favorable than a credit limit of $100and an interest rate of 0% associated with a starter credit cardaccount.

Returning back to FIG. 2, the account information included in customeraccount database 2300 may be data that allows credit card issuer 1200 tomanage the credit card accounts associated with its customers, and mayinclude, but is not limited to, credit limits, interest rates, penaltyfees, payment history information, and customer profile data.

As shown in FIGS. 1 and 2, environment 1000 is configured to allowcredit card issuer 1200 to perform functions consistent with featuresand principles of the present invention. To better understand theinvention, FIGS. 3-12 illustrate exemplary processes performed by thevarious elements of FIGS. 1 and 2.

FIG. 3 shows an exemplary process performed by target customer process2100, consistent with features and principles of the present invention.Once credit card issuer 1200 has established and defined its productscells, rules, and codes needed for managing starter credit cardaccounts, the target customer process 2100 may begin to locate andsolicit potential customers to participate in the trial program. In oneaspect on the invention, target customer process 2100 may identify twotypes of potential customers: front-end and downsell customers.Front-end customers may be customers who have not applied for a creditcard product from credit card issuer 1200 and are determined to be highcredit risks based on their credit profiles. Thus, credit card issuer1200 may initially offer such front-end customers a starter cardaccount. Downsell customers may include customers who have previouslyrequested a credit card product from credit card issuer 1200, but havebeen rejected. The rejection of a credit card product may be based onthe customer's credit profile, but other factors may apply as well. Thepresent invention is not limited to a particular method for screeningpotential customers, but generally contemplates performing a screeningprocess to identify customers who may not normally be offered standardcredit card products from a credit card issuer. For downsell customers,the target customer process 2100 may identify applicants who havepreviously requested credit card products from credit card issuer 1200and may have been declined because of their credit profiles.

To determine the type of customers credit card issuer 1200 is interestedin extending starter card offers, target customer process 2100determines an initial target group of customers (Step 3000). To evaluateand identify specific target starter card customers, several factors maybe considered by the card issuer 1200. Such factors may be based oncredit information received from one or more credit information sources(e.g., sources that provide credit information to credit card issuer1200). Credit information may also be provided to credit card issuer1200 when customers respond to credit card offers from issuer 1200.Moreover, credit information maybe requested by issuer 1200 whiledetermining a target customer group to extend starter card offers.Credit information may include credit history information and/orpersonal information (e.g., income, employment status, etc.) that isused when evaluating a customer's credit worthiness. Credit informationsources may comprise commercial credit information source (such asTRW/Experian, Equifax and TransUnion or a similar commercial creditservice bureau) and/or private credit information services. Creditinformation sources may also represent credit information that wasprovided by customers, such as when a customer applied for theirexisting credit card.

The credit information is analyzed to determine the credit worthiness ora level of risk associated with each cardholder. If a customer meetsselected criteria defined by credit card issuer 1200, target customerprocess 2100 may approve the customer for inclusion in a target customergroup.

Potential customers may be identified and stored in a separate database(not shown) or provided by remote entities that store credit informationon individuals. Once an initial target group of customer is obtainedfrom these potential customers, target customer process 2100 determineswhether each target customer has previously applied for a credit cardproduct from credit card issuer 1200 (Step 3100). If the customer has(Step 3100; YES), target customer process 2100 determines whether thecustomer was rejected for any type of credit card product (Step 3200).In the event the customer has not been previously rejected by creditcard issuer 1200, (Step 3200; NO), or never applied for a credit cardproduct (Step 3100; NO), a front end process is performed (Step 3300)described with reference to FIG. 4. However, if the customer waspreviously rejected for a credit card product form credit card issuer1200 (Step 3200; YES), a downsell process is performed (Step 3400), alsodescribed with reference to FIG. 4.

It should be noted that the sequence of steps illustrated in FIG. 3 arenot intended to be limiting. That is, target customer process 2100 mayaccess its own database of customers who have been refused credit cardproducts by credit card issuer 1200, and begin the downsell process(Step 3400) for those customers. Additionally, the front-end process(Step 3300) may be performed for identified potential starter cardcustomers who have not previously applied for a credit card product fromcredit card issuer 1200.

FIG. 4 illustrates an exemplary process associated with extendingstarter card offers and processing responses to the offers. Targetcustomer process 2100 performs both front-end and downsell processes forcredit card issuer 1200. For each process, product cells stored inproduct cell database 2280 are accessed by target customer process 2100,using loader process 2500, to associate each target starter cardcustomer with a particular product cell. This may be performed byranking the target customers included in the target group based on theircredit profile (Step 4000). For example, the customer ranking may beseparated into 20 levels, with level 1 reflecting target customers withthe best credit profile and level 20 reflecting customers with the worstcredit profile. Accordingly, based on a target customer's ranking, astarter card customer account entry may be created in target customerdatabase 2240 with a corresponding product cell code parameter.Alternately, target customer process 2100 may manage a separate database(not shown) that includes potential target customers for a starter cardaccount, and corresponding product cell information, that are usedmerely to generate offers for a starter card account. As shown in TableIV, the product cell codes correspond to various product cells thatinclude the terms of a starter account, as well as informationassociated with a particular product cell will be marketed. For example,a target customer that is assigned product cell 1 from Table IV, willreceive an offer that is marketed based on the copy version code “A.” Asshown in Table V, copy version “A” indicates to credit card issuer 1200to present an offer without mentioning a credit limit. Of course,variations of each code and their marketing messages may vary, based onthe marketing strategy of the financial institution (e.g., credit cardissuer 1200) implementing methods and systems consistent with featuresof the present invention.

Once the appropriate product cells are associated with each potentialcustomer, target customer process 2100 generates and presents offers fora starter card account to the respective customers (Steps 4100, 4400).Based on the product cell and the type of customer (downsell orfront-end), an offer is generated for each target customer. Thus, eachoffer may vary for each customer based on the product cell associatedwith that customer. That is, a customer with a high credit risk (andhigh credit level rank) may be offered a starter credit card accountwith parameters corresponding to product cell 5, shown in Table IV.Another customer with a lower credit risk, on the other hand, may beoffered a starter card account with parameters corresponding to productcell 1.

Once the offers are generated, they are sent to response vehicle system1100 (see FIG. 1) for distribution to the customers. Each responsevehicle in vehicle 1100 processes the offers in order to provide them tothe customers through the proper medium or communication channel. Forinstance, response vehicle 1110 formulates offers for generation andviewing on one or more web sites. Response vehicle 1130, on the otherhand, processes the offers for presentation to customers throughconventional mail techniques. Once each response vehicle has processedthe offers, they are sent to the specified customers for responses(Steps 4150 and 4450). Customers 1010-1030 respond to the offers usingthe medium associated with their category. The responses are sent backto response vehicle system 1100, where they are processed forpresentation to card issuer 1200 (Steps 4200 and 4500).

There may be a plurality of variations available to card issuer 1200when communicating with customers. That is, a mail customer 1030 maywish to respond by telephone or through a web site. Additionally,customers may respond by one medium, and request notification byanother. For instance, a customer 1030 who has received an offer in themail, may respond by mail, yet request notification through a websiteand the Internet. Accordingly, a variety of user friendly options areavailable to customers for receiving and responding to the offerspresented by card issuer 1200. The above descriptions are forillustration purposes alone and should not be viewed as limitations tothe present invention. One of ordinary skill in the art would realizethat any number of combinations of a communication techniques may beimplemented without departing from the principles of the presentinvention.

Once target customer process 2100 receives the responses from the targetcustomers, it determines which customers accepted their respectiveoffers. Each customer who has accepted their respective offer areassociated with a target customer starter card account that includesparameters corresponding to the product cell associated with their offer(Step 4600). The customers are then presented with a starter credit cardproduct that may be used to purchase goods and/or services, similar to astandard credit card product. Once a target customer has been includedin target customer database 2240, monitor process 2400 begins itsmonitoring functions, consistent with features and principles of thepresent invention (Step 4700).

Monitor process 2400 monitors the starter credit accounts stored intarget customer database 2240 to determine whether particular criteriaare met during a trial period. The criteria associated with each startercard account may be determined by target customer process 2100 when thestarter card accounts are loaded into target customer database 2240. Inone aspect of the invention, the criteria may be set for each targetcustomer as requiring a predetermined number (such as “3”) ofconsecutive on-time payments before a starter card account graduates.Other criteria may be used to supplement or compliment the paymentcriteria, such as overlimit criteria. Furthermore, a trial period mayalso be set by target customer process 2100 when the starter accountsare created. In one aspect of the invention, each starter card accountmay be associated with a trial period of a predetermined number ofmonths, such as six or eight. In another aspect of the invention, thetrial period may be dynamic, and change according to the activities of astarter card account. For instance, a trial period may extend beyondeight months in the event a customer misses a payment associated withtheir starter card account every third month. Of course, this period mayalso be configured to end after a certain number of repetitions.

FIG. 5 illustrates the functions performed by monitor process 2400 aspart of step 4000 of FIG. 4 when analyzing starter card accounts. Theprocess begins by determining whether a status of a starter card accountis in a first statement stage of the trial period (i.e., only the firstaccount statement is being generated to be sent to the customer) (Step5100). The first statement may reflect a bill or credit card statementpresented to a starter card customer indicating payment due (if any)based on previous purchases made with the starter card. In one aspect ofthe invention, a statement is provided to each starter card customerevery month, thus the statements follow a monthly billing cycle withinthe trial period. In the event the status of the starter card account isin the first statement stage, the statement 1 process is performed (Step5120). If the status of the starter card account is not in a firststatement stage (Step 5100; NO), the monitor process determines whethera second statement stage is relevant (i.e., the second account statementis being generated to be sent to the customer) (Step 5200). In the eventthe status of the starter card account is in the second statement stage(Step 5200; YES), a statement 2 process is performed (Step 5220). Ifnot, the monitor process proceeds to Step 5300. The pattern of checkingto determine the current statement stage of the starter card account(Steps 5300-5700) continues until the appropriate statement process isperformed (Steps 5320-5720). As shown in FIG. 5, in one aspect of theinvention, a limit is imposed to the number of stages a starter cardaccount may cycle through based on the predetermined trial period. Forexemplary purposes, FIG. 5 shows that if the status of an account is notin stages 1-7, the account is deemed to be out of the trial period andthe account may be removed from the target customer database (or dealtwith in any other manners as determined by the credit card issuer 1200).

FIG. 6 illustrates an exemplary statement 1 process, consistent withfeatures and principles of the present invention for implementing theprocess of Step 5120 of FIG. 5. A starter card account that isdetermined by the monitor process 2400 to be in a first statement stage,has an introductory account level message code “E” (see Table I) loadedinto the ALM parameter of the starter account stored in the targetcustomer database 2240 (Step 6010). In one aspect of the invention,monitor process 2400 then determines the product cell code associatedthe starter credit account (set as a product cell code in the productcell parameter field of the account). Depending on the product cellcode, a new credit limit parameter associated with the starter card maybe set at a determined value within the range depicted in the productcell's GRAD. CL range (Step 6020). For example, a starter card accountwith a product cell (“PC”) code of “1” may have a new credit limitparameter (included in the target customer database 2240 for eachstarter card account) set at $500. As shown in Table IV, PC 1 has aGRAD. CL range of $200-$500. Accordingly, the new credit limit is setwithin the range of the GRAD. CL parameter and reflects the credit limitthe starter card account will graduate to in the event the predeterminedcriteria is met within the trial period. The monitor process thenreturns to monitoring other starter card accounts until the nextstatement stage is met. Because no payment is due within the firststatement stage (the customer just received the starter credit cardproduct) there is no account activity to be monitored by monitor process2400.

FIG. 7 illustrates an exemplary statement 2 process, consistent withfeatures and principles of the present invention, for implementing theprocess of Step 5220 of FIG. 5. In the statement 2 process, monitorprocess 2400 first determines whether a starter card account is past due(the corresponding customer has not provided at least a minimum paymentfor purchases within the last statement stage) (Step 7010). In the eventthe starter card account is not currently past due (Step 7010; NO), anALM code “A(2)” is set in the ALM parameter of the starter card accountparameter stored in the target customer database 2240. Referring toTable I, an ALM “A(2)” code reflects a message that will be presented tothe customer associated with the starter card account on the nextstatement generated by credit card issuer 1200. For example, ALM “A(2)”will initiate a message that may reflect the customer will receive acredit line increase after “2” more consecutive on-time payments. In oneaspect of the invention, this message is appended to the statement beinggenerated in the respective statement stage. In this case, the statementgenerated in statement stage 2 may include the ALM “A(2)” message.

However, if the starter card account is currently past due (the customerassociated with the starter card account has not made an on-time paymentthat was due during the second statement stage), monitor process 2400determines the type of product cell the starter card account isaffiliated with. As shown in FIG. 7, in one aspect of the invention,product cell 3 is associated with different types of monitoringfunctions than other product cells, so monitor process 2400 determineswhether the starter card account is affiliated with PC 3 (Step 7030).Credit card issuer 1200 may designate selected product cells to beprocessed differently by monitor process 2400 based on the targetstarter card customers affiliated with the selected product cells. Inthe above example, PC 3 may be chosen by credit card issuer 1200 forselective monitoring because PC 3 may be associated with downsellcustomers. It should be noted that variations of this process may beimplemented depending upon the how credit card issuer 1200 wishes tohandle selected ranked target customers. For example, product cells 4and 5 may also be associated with the functions associated with productcell 3 depicted in FIG. 7.

Returning to Step 7030, if the starter card account is associated withPC 3 (Step 7030; YES), an outbound telemarketing message (“OBTM”) is setindicating to credit card issuer 1200 that a customer servicerepresentative may contact the customer associated with the starter cardaccount to inform them of the account's status (Step 7100). Processingthen is directed to Step 7040. At step 7040, monitor process sets an ALMcode “C” in the ALM parameter of the starter card account stored intarget customer database 2240. Next, a letter message code “A” (Step7050) and a call center code McACTN “B” (Step 7060) is set in the lettermessage code, and McACTN code, parameters, respectively, of the samestarter card account. Each of these codes indicate to credit card issuer1200 that the customer has failed to meet the predetermined criteria(consecutive payments), but is to receive another chance. The customerfailed to meet the consecutive payment requirement because the customermissed an on-time payment that was due during statement stage 2.Therefore the customer will not be able to meet the three consecutiveon-time payment requirement starting from statement stage 2.Accordingly, monitor process 2400 sets the criteria, in this case a newnumber of consecutive on-time payments (“OTPs”), required to graduate(Step 7110) and uses this information to set another ALM code “A(3)”(Step 7120). The customer associated with the starter card account mayreceive a statement (i.e., the statement generated during statementstage 2) that includes ALM message “C” and a separate letter (LetterCode “A”) that indicates that a new trial period has been set, and withgraduation criteria set at 3 consecutive on-time payments forgraduation, indicated by the second ALM code “A(3).” In one aspect ofthe invention, credit card issuer 1200 may change the product cellparameter associated with a delinquent starter card account.

FIG. 8 illustrates an exemplary statement 3 process, consistent withfeatures and principles of the present invention for implementing theprocess of Step 5320 of FIG. 5. In the statement 3 process, a startercard account has been through two statement stages, wherein at least onepayment was required (stage 2) and another will be required (stage 3).Monitor process 2400 begins the statement 3 process by determiningwhether the starter card account is currently past due (no payment madethat was due during the third statement stage) (Step 8010). If not,(Step 8010; NO), the monitor process 2400 determines whether the startercard account was previously past due (no payment made during the secondstatement stage) (Step 8020). In the event the customer associated withthe starter card account has made the last two on-time payments, (Step8020; NO), monitor process sets an ALM code “A(1)” in the ALM codeparameter associated with the starter card account stored in the targetcustomer database 2240, and the monitor process continues.

However, in the event the starter card account is previously past due(Step 8020; YES), the monitor process 2400 determines the number of OTPsrequired to graduate (new criteria) (Step 8040) and sets an ALM code“A(2)” in the ALM parameter of the starter card account stored in thetarget customer database 2240. Because the customer has made an on-timepayment that was due during the third statement stage (not currentlypast due), the number of required OTPs is set at “2”, allowing thecustomer to meet the predetermined criteria of 3 consecutive OTPs bymaking the next two payments on time. The monitor process then returnsto FIG. 5 and continues monitoring statement stages.

Returning to Step 8010, in the event the starter card account iscurrently past due (Step 8010; YES), the monitor process 2400 determineswhether the account is previously past due (Step 8060). If so, (Step8060; YES), the monitor process 2400 sets an ALM code “D” in the ALMparameter of the starter card account stored in the target customerdatabase 2240 (Step 8070). Also, in the same account, a letter code “C”(Step 8080) and an call center code McACTN “D” (Step 8090) are set.These codes (ALM “D,” Letter code “C.” and McACTN “D”), indicate tocredit card issuer 1200 that the customer has failed to meet therequired criteria within the trial period, at least twice. Accordingly,in one aspect of the invention, the customer is not given another chanceto restart the trial period, and the account parameters associated withthe failed starter card account are changed (Step 8100).

Changes to a failed starter card account may vary based on severalfactors, such as the type of product cell associated with the originallyoffered starter card account. Based on these factors, the monitorprocess 2400 may change selected parameters of the starter card account.For example, in one aspect of the invention, failed starter cardaccounts associated with product cells 1 and 2 may receive no creditline increase, an increase in APR % to 19.8%, but may still be used topurchase goods and/or services up to the available balance of the creditlimit. On the other hand, failed starter card accounts associated withproduct cells 3-4 may also not receive a credit line increase and anincrease of APR % to 19.8%, but may not utilize the account to purchasegoods and/or services. This adjustment may include reducing the creditlimit to zero, thus preventing use of the starter credit card account.Essentially, credit card issuer 1200 may tailor the ramifications offailing the trial period as needed to balance the risk of offeringcredit card products to high credit risk customers with the probabilityof customers accepting the offers for the starter credit card account inlight of these ramifications.

Returning to Step 8060, in the event the starter card account is notpreviously past due (Step 8060; NO), monitor process 2400 determines thetype of product cell the starter card account is affiliated with. Aspreviously described with reference to FIG. 7, in one aspect of theinvention, product cell 3 may be associated with different types ofmonitoring functions than other product cells, so monitor process 2400determines whether the starter card account is affiliated with PC 3(Step 8110). As previously mentioned, this process may be implementeddepending upon the how credit card issuer 1200 wishes to handle selectedranked target customers. For example, product cells 4 and 5 may also beincluded with the functions associated with product cell 3 depicted inFIG. 8.

Returning to Step 8110, if the starter card account is associated withPC 3 (Step 8110; YES), an OBTM is set indicating to credit card issuer1200 that a customer service representative may contact the customerassociated with the starter card account to inform them of the account'sstatus (Step 8180). Processing is then directed to Step 8120.

At Step 8120, monitor process sets an ALM code “C” in the ALM parameterof the starter card account stored in target customer database 2240.Next, a letter message code “A” (Step 8130) and a call center codeMcACTN “B” (Step 8140) is set in the letter message code, and McACTNcode, parameters, respectively, of the same starter card account. Eachof these codes indicate to credit card issuer 1200 that the customer hasfailed to meet the predetermined criteria (in this case consecutiveon-time payments) within the set trial period, but is to receive anotherchance. Therefore, monitor process 2400 sets the criteria, in this casethe number of consecutive OTPs, required to graduate (Step 8190) anduses this information to set another ALM code “A(3)” (Step 8200).Accordingly, the customer associated with the starter card account mayreceive a statement that includes ALM message “C” and a separate letter(Letter Code “A”) that indicates that a new trial period has been set,and with graduation criteria set at 3 consecutive on-time payments forgraduation, indicated by the second ALM code “A(3).”

FIG. 9 illustrates an exemplary statement 4 process, consistent withfeatures and principles of the present invention, for implementing theprocess of Step 5420 of FIG. 5. In the statement 4 process, a startercard account has been through three statement stages, and a fourthstatement is being generated. Monitor process 2400 begins the statement4 process by determining whether the starter card account is currentlypast due (did the customer make an OTP that was due in statement stage4) (Step 9010). If not (Step 9010; NO), monitor process 2400 determineswhether the starter card account was previously past due (Step 9020). Ifthe starter card account is previously past due, monitor process 2400may be configured to keep the account in the trial period by determiningthe number (“N”) of OTPs required to graduate (Step 9030), and settingan ALM code “A(N)” in the ALM parameter of the starter card accountstored in the target customer database 2240 (Step 9040). The number “N”may be based on the type of product cell the starter card account isassociated with, and whether the customer has made any OTPs during thetrial period up to statement stage 4. Rules database 2260 may includeselective rules that monitor process 2400 may access to determine avalue of “N” based on these, and possibly, other factors. For exemplarypurposes, the predetermined criteria of three consecutive OTPs governsthe monitor process 2400. Thus, because if the starter account waspreviously past due while credit card issuer 1200 is generating thefourth statement, the value “N” may only equal “1” or “2.” A value N=1would depict a missed OTP during statement stage 2, thus requiring onlyone more OTP to meet the determined criteria. On the other hand, a valueN=2 would depict a missed OTP during statement stage 3 and require anOTP during statement stages 5 and 6 in order for the customer to meetthe predetermined thee consecutive OTPs criteria.

Returning back to Step 9020, in the event the starter card account isnot previously past due (Step 9020; NO), monitor process 2400 may set anALM code “B” (Step 9050), a letter code “B” (Step 9060), and a callcenter code McACTN “C” (Step 9070) in the starter card account stored inthe target customer database 2240. These codes indicate to credit cardissuer 1200 that the customer associated with the starter card accounthas met the criteria of three consecutive OTPs, and that the account iseligible for graduation parameters. Monitor process 2400 adjusts thecredit card account stored in the target customer database 2240 toindicate that the graduation parameters should be activated, thusallowing the account to be processed with these parameters. For example,once a customer associated with the graduated account receives thenotifications corresponding to the ALM, letter, and McACTN codes, theymay use the starter credit card product to purchase goods and/orservices with the added credit indicated by the new credit limitparameter activated by monitor process 2400.

Returning to Step 9010, in the event the starter card account iscurrently past due (Step 9010; YES), the monitor process 2400 determinesagain whether the account was previously past due (Step 9090). If so,(Step 9090; YES), the monitor process 2400 sets an ALM code “D” in theALM parameter of the starter card account stored in the target customerdatabase 2240 (Step 9200). Also, in the same account, a letter code “C”(Step 9210) and an call center code McACTN “D” (Step 9220) are set.These codes (ALM “D,” Letter code “C,” and McACTN “D”), indicate tocredit card issuer 1200 that the customer has failed to meet therequired criteria within the trial period, at least twice. Accordingly,in one aspect of the invention, the customer is not given another chanceto restart the trial period, and the account parameters associated withthe failed starter card account are changed in a manner similar to thatdescribed in FIG. 8, Step 8100.

Returning to Step 9090, in the event the starter card account is notpreviously past due (Step 9090; NO), monitor process 2400 determines thetype of product cell the starter card account is affiliated with. Aspreviously described with reference to FIG. 8, in one aspect of theinvention, product cell 3 may be associated with different types offunctions then other product cells, so monitor process 2400 determineswhether the starter card account is affiliated with PC 3 (Step 9100).Alternately, other product cells, such as product cells 4 and 5, mayalso be included with the functions associated with product cell 3depicted in FIG. 9.

Returning to Step 9100, if the starter card account is associated withPC 3 (Step 9100; YES), an OBTM code is set indicating to credit cardissuer 1200 that a customer service representative may contact thecustomer associated with the starter card account to inform them of theaccount's status (Step 9170). Processing is then directed to Step 9110.At Step 9110, monitor process sets an ALM code “C” in the ALM parameterof the starter card account stored in target customer database 2240.Next, a letter message code “A” (Step 9120) and a call center codeMcACTN “B” (Step 9130) is set in the letter message code, and McACTNcode, parameters, respectively, of the same starter card account. Eachof these codes indicate to credit card issuer 1200 that the customer hasfailed to meet the predetermined criteria (in this case consecutiveon-time payments) within the set trial period up to statement stage 4,but is eligible to receive another chance. Therefore, monitor process2400 sets the criteria, in this case the number of consecutive OTPs,required to graduate (Step 9180) and uses this information to setanother ALM code “A(3)” (Step 9190). Accordingly, the customerassociated with the starter card account may receive a statement thatincludes ALM message “C” and a separate letter (Letter Code “A”) thatindicates that a new trial period has been set, and with graduationcriteria set at 3 consecutive on-time payments for graduation, indicatedby the second ALM code “A(3).”

FIG. 10 illustrates an exemplary statement 5 process, consistent withfeatures and principles of the present invention, for implementing theprocess of Step 5520 of FIG. 5. Monitor process 2400 begins thestatement 5 process by determining whether the starter card account iscurrently past due (Step 10010). If not (Step 10010; NO), monitorprocess 2400 determines whether the starter card account is previouslypast due (Step 10020). If the starter card account is not previouslypast due (Step 10020; NO), the starter card account should have beenremoved from the trial period because the customer did not miss any OTPsby the statement 5 stage (Step 10030). Accordingly, monitor process 2400may flag this account as being erroneously included in the trial period,and a message may be sent to a representative to follow up on the statusof the account. Alternatively, monitor process 2400 may perform adefault process to activate the graduation parameters associated withthis account as if the starter card account has graduated in thestatement 5 stage.

Returning to Step 10020, if monitor process 2400 determines that thestarter account is previously past due (Step 10020; YES), it determinesa number “N” of OTPs required to graduate based on the payments historyof the account (Step 10100). For example, the customer associated withthe starter card account may have missed an OTP that was due duringstatement stage 2, but made OTPs that were due during stages 3, 4 and 5.In this case the number of OTPs would be determined by the monitorprocess 2400 as “0.” On the other hand, if the customer associated withthe starter card account missed an OTP during stage 3, but made an OTPduring stages 4 and 5, the number of required OTPs to graduate would beset at “1.” Based on the calculated required number of OTPs to graduate,monitor process 2400 may perform different tasks. For instance, as shownin FIG. 10, if the number “N” of required OTPs is equal to “1” or “2,”an ALM code “A(N)” in the ALM code parameter of the starter card accountstored in the target customer database (Step 10120), and the monitorprocess returns to FIG. 5 for processing.

However, if the number “N” of required OTPs is equal to “0,” monitorprocess 2400 may set an ALM code “B” (Step 10130), a letter code “B”(Step 10140), and a call center code McACTN “C” (Step 10150) in thestarter card account stored in the target customer database 2240. Thesecodes indicate to credit card issuer 1200 that the customer associatedwith the starter card account has met the criteria of three consecutiveOTPs, and that the account is eligible for graduation. Subsequently,monitor process 2400 activates the graduation parameters associated withstarter account (Step 10160), similar to the tasks performed in FIG. 9,Step 9080.

Returning to Step 10010, in the event the starter card account iscurrently past due (Step 10010; YES), the monitor process 2400determines whether the account is previously past due (Step 10040). Ifso, (Step 10040; YES), the monitor process 2400 sets an ALM code “D” inthe ALM parameter of the starter card account stored in the targetcustomer database 2240 (Step 10060). Also, in the same account, a lettercode “C” (Step 10070) and an call center code McACTN “D” (Step 10080)are set. These codes (ALM “D,” Letter code “C.” and McACTN “D,” indicateto credit card issuer 1200 that the customer has failed to meet therequired criteria within the trial period, at least twice. Accordingly,in one aspect of the invention, the customer is not given another chanceto restart the trial period, and the account parameters associated withthe failed starter card account are changed in a manner similar to thatdescribed in FIG. 8, Step 8100.

On the other hand, referring back to Step 10040, if the starter cardaccount is not previously past due (Step 10040; NO), the starter cardaccount should have been removed from the trial period because thecustomer did not miss any OTPs previous to the statement 5 stage (Step10050). Accordingly, monitor process 2400 may flag this account as beingerroneously included in the trial period, and a message may be sent to arepresentative to follow up on the status of the account. Alternatively,monitor process 2400 may perform a default process to activate thegraduation parameters associated with this account as if the startercard account has graduated at the statement 5 stage.

FIG. 11 illustrates an exemplary statement 6 process, consistent withfeatures and principles of the present invention, for implementing theprocess of Step 5620 of FIG. 5. Monitor process 2400 begins thestatement 6 process by determining whether the starter card account iscurrently past due (Step 11010). If not (Step 11010; NO), monitorprocess 2400 determines whether the starter card account is previouslypast due (Step 11020). If the starter card account is not previouslypast due (Step 11020; NO), the starter card account should have beenremoved from the trial period because the customer did not miss any OTPsby the sixth statement stage (Step 11030). Accordingly, monitor process2400 may flag this account as being erroneously included in the trialperiod, and a message may be sent to a representative to follow up onthe status of the account. Alternatively, monitor process 2400 mayactivate a default process to activate the graduation parametersassociated with this account as if the starter card account hasgraduated at the statement 5 stage.

Returning to Step 11020, if monitor process 2400 determines that thestarter account was previously past due (Step 11020; YES), it determinesa number “N” of OTPs required to graduate based on the payments historyof the account (Step 11100). For example, the customer associated withthe starter card account may have missed an OTP during statement stage3, but made OTPs that were due during stages 4, 5 and 6. In this casethe number “N” of OTPs would be determined by the monitor process 2400as “0.” On the other hand, if the customer associated with the startercard account missed an OTP during stage 4, but made an OTP during stages5 and 6, the number “N” of required OTPs to graduate would be set at“2.” Based on the calculated required number of OTPs to graduate,monitor process 2400 may perform different tasks. For instance, in oneaspect of the invention, if the number “N” of required OTPs is equal to“1” (Step 11110; NO), an ALM code “A(N)” in the ALM code parameter ofthe starter card account stored in the target customer database (Step11120), and the monitor process returns to FIG. 3 for processing.

In another aspect of the invention, criteria associated with therequirement of three consecutive OTPs may include not allowing twomissed payments at anytime during the trial period. In this aspect, asshown in FIG. 11, the required number of OTPs cannot equal “2” withouthaving two previous missed payments between statement stages 1-6.Accordingly, monitor process may bypass checking for “N=2,” and defaultto failing the starter card account if “N” does not equal “1” or “0.”

Returning back to Step 11110, if the number “N” of required OTPs isequal to “0,” (Step 11110; YES), monitor process 2400 may set an ALMcode “B” (Step 11130), a letter code “B” (Step 11140), and a call centercode McACTN “C” (Step 11150) in the starter card account stored in thetarget customer database 2240. These codes indicate to credit cardissuer 1200 that the customer associated with the starter card accounthas met the criteria of three consecutive OTPs, and that the account iseligible for graduation parameters. Subsequently, monitor process 2400activates the graduation parameters associated with starter account(Step 11170), similar to the tasks performed in FIG. 9, Step 9080.

Returning to Step 11010, in the event the starter card account iscurrently past due (Step 11010; YES), the monitor process 2400determines again whether the account was previously past due (Step11040). If so, (Step 11040; YES), the monitor process 2400 sets an ALMcode “D” in the ALM parameter of the starter card account stored in thetarget customer database 2240 (Step 11060). Also, in the same account, aletter code “C” (Step 11070) and an call center code McACTN “D” (Step11080) are set. These codes (ALM “D,” Letter code “C.” and McACTN “D,”indicate to credit card issuer 1200 that the customer has failed to meetthe required criteria within the trial period, at least twice.Accordingly, in one aspect of the invention, the customer is not givenanother chance to restart the trial period, and the account parametersassociated with the failed starter card account are changed in a mannersimilar to that described in FIG. 8, Step 8100.

On the other hand, referring back to Step 10040, if the starter cardaccount is not previously past due (Step 11040; NO), the starter cardaccount should have been removed from the trial period because thecustomer did not miss any OTPs previous to the statement 5 stage (Step11050). Accordingly, monitor process 2400 may flag this account as beingerroneously included in the trial period, and a message may be sent to arepresentative to follow up on the status of the account. Alternatively,monitor process 2400 may perform a default process to activate thegraduation parameters associated with this account as if the startercard account has graduated at the statement 5 stage.

FIG. 12 illustrates an exemplary statement 7 process, consistent withfeatures and principles of the present invention, for implementing theprocess of Step 5720 of FIG. 5. Monitor process 2400 begins thestatement 7 process by determining whether the starter card account iscurrently past due (Step 12010). If not (Step 12010; NO), monitorprocess 2400 determines whether the starter card account was previouslypast due (Step 12020). If the starter card account was not previouslypast due (Step 12020; NO), the starter card account should have beenremoved from the trial period because the customer did not miss any OTPsby the seventh statement stage (Step 12030). Monitor process 2400 mayprocess the starter account in a similar manner to that described inFIG. 11, Step 11030.

Returning to Step 12020, if monitor process 2400 determines that thestarter account is previously past due (Step 12020; YES), it determinesa number “N” of OTPs required to graduate based on the payments historyof the account (Step 12100). Similar to FIGS. 10 and 11, based on thecalculated required number of OTPs to graduate, monitor process 2400 mayperform different tasks. In one aspect of the invention, as shown inFIG. 12, if the number “N” of required OTPs is equal to “1,” “2,” or“3,” monitor process 2400 may determine that the starter card accountshould have been removed from the trial period prior to the statement 7process (Step 12120). Monitor process 2400 may determine this based onanother criteria set forth by target customer process 2100 that requiresa customer not to miss any two OTPs during a trial period. Alternately,the trial period may be set to end after the seventh statement stage,thus eliminating the possibility for a customer to meet the requiredthree consecutive OTPs by the seventh stage. Accordingly, monitorprocess determines that the starter card should be out of the trialperiod and may notify a representative of the erroneously status of theaccount.

However, if the number “N” of required OTPs is equal to “0,” monitorprocess 2400 may set an ALM code “B” (Step 12130), a letter code “B”(Step 12140), and a call center code McACTN “C” (Step 12150) in thestarter card account stored in the target customer database 2240. Thesecodes indicate to credit card issuer 1200 that the customer associatedwith the starter card account has met the criteria of three consecutiveOTPs, and that the account is eligible for graduation parameters.Subsequently, monitor process 2400 activates the graduation parametersassociated with starter account (Step 12170), similar to the tasksperformed in FIG. 9, Step 9080.

Returning to Step 12010, in the event the starter card account wascurrently past due (Step 12010; YES), the monitor process 2400determines again whether the account is previously past due (Step12040). If so, (Step 10040; YES), the monitor process 2400 sets an ALMcode “D” in the ALM parameter of the starter card account stored in thetarget customer database 2240 (Step 12060). Also, in the same account, aletter code “C” (Step 12070) and an call center code McACTN “D” (Step12080) are set. These codes (ALM “D,” Letter code “C.” and McACTN “D,”indicate to credit card issuer 1200 that the customer has dfailed tomeet the required criteria within the trial period, at least twice.Accordingly, in one aspect of the invention, the customer is not givenanother chance to restart the trial period, and the account parametersassociated with the failed starter card account are changed in a mannersimilar to that described in FIG. 8, Step 8100.

On the other hand, referring back to Step 12040, if the starter cardaccount was not previously past due (Step 12040; NO), the starter cardaccount should have been removed from the trial period because thecustomer did not miss any OTPs previous to the seventh statement stage(Step 12050). Accordingly, monitor process 2400 may process the startercard account in a manner similar to that performed in FIG. 11, Step11030.

As described, methods and systems consistent with features andprinciples of the present invention enable a credit card issuer toprovide customized starter credit card products to customers whomnormally would not be eligible for standard credit card products. Inmanaging the starter card accounts, credit card issuer 1200 monitorsparameters and activities against defined criteria associated with eachstarter card account. As previously mentioned, the parameters andstarter card account information may be kept in a starter card database2200 during a defined trial period. While the starter card account datais kept in database 220, credit card issuer 1200 may prevent the accountfrom being accessed or utilized by other processes operating withincredit card issuer 1200. For example, credit card issuer 1200 may alsoinclude processes that interact with central database 2300 formanagement of the standard credit accounts maintained therein.Furthermore, test processes may also access the account informationwithin customer account database 2300 to perform marketing andsolicitation tests for credit card issuer 1200. These processes may beprevented from accessing the starter card accounts kept with startercard database 2200.

However, in one aspect of the invention, selected starter card accountsthat have either graduated or failed, based on selected criteria, may beloaded into customer account database, and accessed in the same manneras standard credit card accounts. To facilitate this process, loaderprocess 2500 may periodically check the status of each starter cardaccount stored in target customer database 2240 to determine whether anaccount is “ready” for loading. A “ready” account may be designated as astarter card account that has If either failed based on selectedcriteria (such as two missed payments within a trial period) orgraduated. Other specifications to define a “ready” account may also beutilized by methods and systems consistent with features of the presentinvention, and are not limited to the examples mentioned above.

FIG. 13 illustrates an exemplary loading chart that loading process 2500may follow to load starter card account information from target customerdatabase 2240 to customer account database 2300. For exemplary purposes,the chart depicted in FIG. 13 is associated with a trial period set atseven statement stages and a requirement of three consecutive OTPswithout two missed payments during the trial period.

As shown in FIG. 13, statement stage indicator 1310 reflects the currentstage a starter card account is currently be processed. Row 1320 mayreflect the payment number associated with a corresponding statementstage, while rows 1330 reflect various PASS/FAIL codes associated withthe types of activities performed with the starter card account. A key1335 defines the elements included within the loading chart.

As shown in FIG. 13, key element 1340 indicates that no payment was dueby the customer during that statement stage. Key element 1350 defines“OTP” as an on-time payment, while key element 1360 defines “NO” as amissed payment during a particular statement stage. Key element 1370defines “LAG” as a lag period. A lag period is associated with startercard accounts that have failed a trial period. As previously discussed,credit card issuer 1200 may define particular failure parametersassociated with each starter card account. One of those failureparameters is an increased APR %. Credit card issuer 1200 may institutean increasing APR % based on a failing starter card account, up to 25%,for example for particular delinquent accounts. To “soften the blow” ona customer who has been participating in a trial period where an trialAPR % of 0% was implemented, a lag period may be provided with anintermediate failure APR %, such as 19.8% before changing the APR % tothe maximum amount of 25%. This may give a delinquent customer time toadjust to the new intermediate APR %, but also to educate the customerin the ramifications of holding a credit account with a interest ratemuch higher that 0%. Returning to FIG. 13, the last key element 1380defines when loader process 2500 begins to load the starter card accountinto the customer account database 2300.

Therefore, referring to PASS code 4 within the loading chart shown inFIG. 13, a starter card account that is in, for example, statement stage5, and has missed an OTP during statement stage 4, may still meet thecriteria of three consecutive OTPs by the end of the trial period set atstage 7. However, a starter card account in the same statement stage 5that has either missed two OTPs in stages 1-4, or missed a singlepayment during stage 5, will not be eligible to graduate. (See FAILcodes 5-10). Each of the PASS/FAIL codes 1330 may be used by monitorprocess 2400 to indicate the status of a starter account stored intarget customer database 2240. A parameter for these codes may beassociated with each starter card account and defined by the monitorprocess 2400 during the monitor process. Loader process 2500 may alsouse these codes to determine which starter card accounts are ready forloading, as well a lag period parameter to indicate whether two lagperiods have passed.

Accordingly, loader process may use the PASS/FAIL codes, (or alternatelya “ready” code parameter associated with each starter card account) toaid in its process to determine whether an account is ready for loading.As shown in FIG. 13, all accounts that have graduated (PASS codes) areloaded into customer account database 2300 without waiting for any lagperiods. Conversely, every starter card account with FAIL codesassociated with it have two consecutive lag periods before they areloaded into customer account database 2300.

As described, methods and systems consistent with features andprinciples of the present invention enable a credit card issuer toprovide starter credit card products to customers not eligible to obtainstandard credit card products. The starter card products include definedparameters that allow the credit card issuer to control and monitor theactivities of a restive account, while at the same time give incentiveto high credit risk customers to train themselves to make paymentsconsistently, and in a timely fashion.

Variations of the methods and systems consistent with the presentinvention previously described may be implemented without departing fromthe scope of the invention. For example, the starter credit cardaccounts offered and managed by credit card issuer 1200 may be presentedto individuals other than high credit risk customers. The targetcustomers identified by credit card issuer 1200 may include standardcredit card customers, or customers of competing credit card issuers.Also, the starter products may be associated with other types offinancial or credit products, including financial loans offered byfinancial institutions, such as banks and mortgage lenders. Furthermore,the sequence of processes performed by credit card issuer 1200 duringthe monitor process is not limited to the examples depicted in FIGS.3-12. For instance, any number of consecutive OTPs may be used; meet acertain percentage of OTPs over a predetermined period or over the trialperiod; may fail when any number of late payments (not just two aspreviously described); or fail when a payment is late a consecutivenumber of times. Alternately, variations of these processes, as well asanalysis of the product cells, and starter card account parameters maybe modified to suit the purposes and marketing goals of institutionsoffering the starter card products.

Additionally, the results of a starter card account meeting a predefinedcriteria may vary as well. For example, a starter card account may beput through consecutive trial periods with a gradual increase inbenefits (and parameters) associated with the starter card account aftereach successful trial period. For instance, a credit card issuer mayincrease the credit limit and interest rate of a starter card accountthat has met a predefined criteria in a first trial period. However, theincreased credit limit and interest rate may be valid only during asecond trial period. After the starter card account has met anotherpredefined criteria (which may or may not be the same criteria used forthe first trial period) in a subsequent trial period, the credit limitand interest rate may change again. This sequence may continue until thestarter card account is eligible for a standard credit card offered bythe credit card issuer.

Also, methods, systems, and articles of manufacturer, consistent withfeatures and principles of the present invention may provide customerswith starter card account “tracts” when presenting offers for theseaccounts. Starter card account “tracts” may be various graduationroadmaps that describe various conditions and graduation parameters thatmay be obtained when the customer meets predetermined criteria. Forexample, a customer may be presented, perhaps through a web site orconventional mail solicitation, a number of starter card tracts fromwhich the customer may chose to receive a starter credit account. Forinstance, a first tract may include parameters associated with productcell 1 previously described in Table IV. Additionally, the first tractmay describe the type of criteria that must be met, and whether thegraduation parameters include another trail period. On the other hand, asecond tract may include starter credit account parameters that aredifferent that the first tract. For example, the second tract mayinclude an interest rate higher that that included in the first tract,but with a higher credit limit.

Additionally, systems, methods and articles of manufacturer consistentwith features and principles of the present invention may implement a“never-ending” trial period for customers who fail to meet thepredetermined criteria associated their respective credit accounts. Forexample, a credit account issuer may enroll a customer into a startercredit account that allows a new trial period to begin each time thecustomer fails to meet the predetermined criteria defined for theircredit account. The new trial periods may be associated with the samestarter account parameters and criteria as the previous trial period, ormay include modified parameters and/or criteria.

Furthermore, although aspects of the present invention are described asbeing associated with data stored in memory and other storage mediums,one skilled in the art will appreciate that these aspects can also bestored on or read from other types of computer-readable media, such assecondary storage devices, like hard disks, floppy disks, or CD-ROM; acarrier wave from the Internet; or other forms of RAM or ROM.Accordingly, the invention is not limited to the above describedembodiments, but instead is defined by the appended claims in light oftheir full scope of equivalents

What is claimed is:
 1. A system for providing a starter credit account,comprising: a processor; and a memory storing a set of instructionsthat, when executed by the processor, perform operations comprising:providing a plurality of credit accounts including at least one startercredit account associated with starter credit account parameters and at(east one standard credit account associated with standard creditaccount parameters that are more favorable than the starter creditaccount parameters, wherein the starter credit account is provided to atrial customer who is not eligible to obtain the standard creditaccount; monitoring the starter credit account to determine whether thetrial customer has met predetermined criteria associated with thestarter credit account during a trial period and adjusting the startercredit account parameters based on the determination; modifying theduration of the trial period based on activities associated with thestarter credit account; storing credit account information associatedwith standard credit account customers of the credit issuer in a firstmemory; storing starter credit account information associated with thetrial customer in a second memory; and loading the starter creditaccount information stored in the second memory into the first memoryafter the starter credit account parameters associated with the startercredit account have been adjusted based on the determination.
 2. Thesystem of claim 1, wherein the parameters include a credit limit and theoperation of monitoring comprises increasing the credit limit when it isdetermined that the trial customer has met the predetermined criteriaduring the trial period.
 3. The system of claim 1, wherein theparameters further include an interest rate and the operation ofmonitoring comprises adjusting the interest rate when the trial customerhas met the predetermined criteria.
 4. The system of claim 1, whereinthe parameters include an interest rate and a credit limit and theoperation of monitoring comprises reducing the credit limit andadjusting the interest rate when the trial customer has not met thepredetermined criteria.
 5. The system of claim 4, wherein the creditlimit is reduced to zero.
 6. The system of claim 1, wherein theoperation of monitoring comprises restarting the trial period when thetrial customer has not met the predetermined criteria and monitoring thestarter credit account to determine whether the trial customer has metthe predetermined criteria during the restarted trial period.
 7. Thesystem of claim 1, wherein the memory further stores instructions that,when executed by the processor, cause the processor to performoperations comprising: determining a group of customers who are noteligible to obtain the standard credit account; ranking the group ofcustomers based on each customer's credit profile, wherein the trialcustomer is included in the group of ranked customers; and wherein theoperation of monitoring adjusts the starter credit account parametersassociated with the starter credit account based on the ranking of thetrial customer.
 8. A non-transitory computer-readable medium storinginstructions operable to cause one or more processors to performoperations comprising: receiving a request for the standard creditaccount from the customer; providing a starter credit account in placeof the standard credit account to the customer; monitoring thecustomer's activities associated with the starter credit account duringa trial period to determine whether the customer has satisfiedpredetermined criteria; modifying the duration of the trial period basedon the monitored customer's activities associated with the startercredit account; and upgrading at least one of the starter credit accountparameters to match at least one of the standard credit accountparameters when the customer has satisfied the predetermined criteria.9. The computer-readable medium of claim 8, wherein the starter creditaccount parameters include at least a starter credit limit, and whereinthe operation of monitoring the customer's activities comprises:determining whether the customer has an outstanding balance associatedwith the starter credit limit; and determining whether the customer hasmade a payment toward the outstanding balance.
 10. The computer-readablemedium of claim 9, wherein the operation of determining whether thecustomer has made a payment further comprises: determining whether thecustomer has made the payment within an acceptable period of time. 11.The computer-readable medium of claim 8, wherein the operation ofupgrading at least one of the starter credit account parameterscomprises: increasing a starter credit limit associated with the startercredit account when the customer has satisfied the predeterminedcriteria.
 12. The computer-readable medium of claim 8, wherein theoperation of upgrading at least one of the starter credit accountparameters comprises: increasing a starter credit limit associated withthe starter credit account and adjusting an interest rate associatedwith the starter credit account when the customer has satisfied thepredetermined criteria during the trial period.
 13. Thecomputer-readable medium of claim 12, wherein the predetermined criteriainclude at least one of making a predetermined number of consecutive ontime payments, and not exceeding the starter credit limit.
 14. Thecomputer-readable medium of claim 8, wherein the operation of upgradingat least one of the starter credit account parameters is replaced with:downgrading at east one of the starter credit account parameters basedon the monitoring.
 15. The computer-readable medium of claim 14, whereinthe operation of downgrading further comprises: determining that thecustomer has not met a predetermined criteria during the trial periodbased on the monitoring; and restarting the trial period.
 16. Thecomputer-readable medium of claim 14, wherein the operation ofdowngrading further comprises: determining that the customer has not meta predetermined criteria during the trial period based on themonitoring; preventing use of the starter credit account to purchasegoods and/or services; increasing an interest rate associated with thestarter credit account; and assessing penalty fees to the starter creditaccount.
 17. A non-transitory computer-readable medium storinginstructions operable to cause one or more processors to performoperations comprising: providing a starter credit account to a customer,wherein the customer is not eligible to receive a standard creditaccount; monitoring the customers activities associated with the startercredit account during a trial period to determine whether the customerhas satisfied predetermined criteria during the trial period; notifyingthe customer of unsatisfied predetermined criteria during the trialperiod; and modifying the starter credit account parameters based on themonitoring, wherein modifying includes upgrading at least one of thestarter credit account parameters to match at least one of the standardcredit account parameters when the customer has satisfied thepredetermined criteria during the trial period.
 18. Thecomputer-readable medium of claim 17, wherein the starter credit accountparameters include at least a starter credit limit, and wherein theoperation of monitoring the customers activities comprises: determiningwhether the customer has an outstanding balance associated with thestarter credit limit; and determining whether the customer has made apayment toward the outstanding balance.
 19. The computer-readable mediumof claim 18, wherein the operation of determining whether the customerhas made a payment further comprises: determining whether the customerhas made the payment within an acceptable period of time.
 20. Thecomputer-readable medium of claim 17, wherein the operation of modifyingthe starter credit account parameters comprises: increasing a startercredit limit associated with the starter credit account and adjusting aninterest rate associated with the starter credit account when thecustomer has satisfied the predetermined criteria during the trialperiod.
 21. The computer-readable medium of claim 20, wherein thepredetermined criteria include at least one of making a predeterminednumber of consecutive on time payments, and not exceeding the startercredit limit.
 22. The computer-readable medium of claim 17, wherein theoperation of modifying the starter credit account parameters comprises:downgrading at least one of the starter credit account parameters basedon the monitoring.
 23. The computer-readable medium of claim 22, whereinthe operation of downgrading comprises: determining that the customerhas not satisfied the predetermined criteria during the trial periodbased on the monitoring; and restarting the trial period.
 24. Thecomputer-readable medium of claim 22, wherein the operation ofdowngrading comprises: determining that the customer has not satisfiedthe predetermined criteria during the trial period based on themonitoring; preventing use of the starter credit account to purchasegoods and/or services; increasing an interest rate associated with thestarter credit account; and assessing penalty fees to the starter creditaccount.
 25. A non-transitory computer-readable medium storinginstructions operable to cause one or more processors to performoperations comprising: determining a group of customers with existingcredit histories who have not previously applied for the standard creditaccount and are eligible for the starter credit account, wherein thecustomers included in the group each have a credit profile that preventsthe customers from obtaining the standard credit account; ranking thecustomers included in the group; providing a starter credit account toeach customer included in the group, wherein parameters associated witheach starter credit account vary based on the rank of each customer;determining a trial period for each ranked customer; determining, foreach ranked customer, a predetermined criteria that the customer mustsatisfy for the starter credit account parameters to be upgraded; andfor each ranked customer: determining whether the ranked customer hasmet the predetermined criteria during the trial period; and upgradingthe account parameters associated with the ranked customer based on thedetermination.
 26. The computer-readable medium of claim 25, wherein theoperation of adjusting the account parameters comprises: increasing acredit limit associated with the starter credit account when thecustomer has met the predetermined criteria.
 27. The computer-readablemedium of claim 25, wherein the operation of adjusting the accountparameters comprises: adjusting an interest rate associated with thestarter credit account when the customer has met the predeterminedcriteria.
 28. The computer-readable medium of claim 25, wherein theoperation of adjusting the account parameters comprises: adjusting theaccount parameters to reflect parameters equivalent to parametersassociated with the standard credit account when the customer has metthe predetermined criteria.
 29. The computer-readable medium of claim25, wherein the operation of adjusting the account parameters comprises:restarting the trial period when the customer has not met thepredetermined criteria and based on the rank of the customer.
 30. Thecomputer-readable medium of claim 25, wherein the operation of adjustingthe account parameters comprises: preventing the starter credit accountfrom being used to purchase goods and/or services when the customer hasnot met the predetermined criteria and based on the rank of thecustomer.
 31. The computer-readable medium of claim 25, wherein theoperation of ranking the customers included in the group comprises:ranking the customers based on the credit profile of each customerincluded in the group.
 32. The computer-readable medium of claim 25,wherein the predetermined criteria include at least one of making anumber of consecutive on-time payments, and not exceeding a credit limitassociated with the starter credit account.
 33. The computer-readablemedium of claim 25, wherein the operation of determining whether theranked customer has met the predetermined criteria during the trialperiod comprises: determining at predetermined intervals within thetrial period whether the customer has made a number of consecutiveon-time payments associated with their respective starter creditaccount.
 34. A non-transitory computer-readable medium storinginstructions operable to cause one or more processors to performoperations for providing credit accounts, the operations comprising:receiving a request from a customer for a first credit accountassociated with a first account parameters included a first credit limitand a first interest rate; providing to the customer a second creditaccount associated with second account parameters including a secondcredit limit and a second interest rate, wherein the second credit limitis lower than the first credit limit; notifying the customer of a thirdcredit limit while the customer is provided the second credit limit, thenotifying including information reflecting that the third credit limitis obtainable by making a predetermined number of consecutive on timepayments and wherein the third credit limit is higher than the secondcredit limit and lower than the first credit limit; monitoring thesecond credit account to determine whether the customer has made thepredetermined number of consecutive on time payments; and changing thesecond credit limit to the third credit limit when it is determined thatthe customer has made the predetermined number of on-time paymentsassociated with the second credit account.
 35. The computer-readablemedium of claim 34, wherein the third credit limit is based on apredetermined amount based on a number of on-time payments made by thecustomer.
 36. A non-transitory computer-readable medium storinginstructions operable to cause one or more processors to performoperations for providing credit accounts, the operations comprising:receiving a request from a customer for a first credit accountassociated with first account parameters including a first credit limitand a first interest rate; providing to the customer a second creditaccount associated with second account parameters including a secondcredit limit and a second interest rate; monitoring the second creditaccount to determine whether the customer has performed at least one ofmaking a predetermined number of consecutive on time payments or notexceeding the second credit limit; and changing the second interest rateto a third interest rate that is higher than the first interest rate,when it is determined that the customer has made the predeterminednumber of on-time payments associated with the second credit account.37. A system for providing a credit account to a customer of an accountissuer that provides a starter credit account associated with startercredit account parameters and a standard credit account associated withstandard credit account parameters more favorable than the startercredit account parameters, comprising: a processor; and a memory storinga set of instructions that, when executed by the processor, performoperations comprising: receiving a request for the standard creditaccount from the customer; providing a starter credit account in placeof the standard credit account to the customer; monitoring thecustomer's activities associated with the starter credit account duringa trial period to determine whether the customer has satisfiedpredetermined criteria; modifying the duration of the trial period basedon the monitored customer's activities associated with the startercredit account; and upgrading at least one of the starter credit accountparameters to match at least one of the standard credit accountparameters when the customer has satisfied the predetermined criteria.38. The system of claim 37, wherein the starter credit accountparameters include at least a starter credit limit, and wherein theoperation of monitoring the customer's activities comprises: determiningwhether the customer has an outstanding balance associated with thestarter credit limit; and determining whether the customer has made apayment toward the outstanding balance.
 39. The system of claim 38,wherein the operation of determining whether the customer has made apayment further comprises: determining whether the customer has made thepayment within an acceptable period of time.
 40. The system of claim 37,wherein the operation of upgrading at least one of the starter creditaccount parameters comprises: increasing a starter credit limitassociated with the starter credit account when the customer hassatisfied the predetermined criteria.
 41. The system of claim 37,wherein the operation of upgrading at least one of the starter creditaccount parameters comprises: increasing a starter credit limitassociated with the starter credit account and adjusting an interestrate associated with the starter credit account when the customer hassatisfied the predetermined criteria during the trial period.
 42. Thesystem of claim 41, wherein the predetermined criteria include at leastone of making a predetermined number of consecutive on time payments ornot exceeding the starter credit limit.
 43. The system of claim 37,wherein the operation of upgrading at least one of the starter creditaccount parameters is replaced with: downgrading at least one of thestarter credit account parameters based on the monitoring.
 44. Thesystem of claim 43, wherein the operation of downgrading furthercomprises: determining that the customer has not met a predeterminedcriteria during the trial period based on the monitoring; and restartingthe trial period.
 45. The system of claim 43, wherein the operation ofdowngrading further comprises: determining that the customer has not meta predetermined criteria during the trial period based on themonitoring; preventing use of the starter credit account to purchasegoods and/or services; increasing an interest rate associated with thestarter credit account; and assessing penalty fees to the starter creditaccount.
 46. A system for providing a credit account to a customer of acredit issuer that provides a starter credit account associated withstarter credit account parameters and a standard credit accountassociated with standard credit account parameters more favorable thanthe starter credit account parameters, comprising: a processor; and amemory storing a set of instructions that, when executed by theprocessor, perform operations comprising: providing a starter creditaccount to a customer, wherein the customer is not eligible to receive astandard credit account; monitoring the customers activities associatedwith the starter credit account during a trial period to determinewhether the customer has satisfied predetermined criteria during thetrial period; notifying the customer of unsatisfied predeterminedcriteria during the trial period; and modifying the starter creditaccount parameters based on the monitoring, wherein the modifyingincludes upgrading at least one of the starter credit account parametersto match at least one of the standard credit account parameters when thecustomer has satisfied the predetermined criteria during the trialperiod.
 47. The system of claim 46, wherein the starter credit accountparameters include at least a starter credit limit, and wherein theoperation of monitoring the customers activities comprises: determiningwhether the customer has an outstanding balance associated with thestarter credit limit; and determining whether the customer has made apayment toward the outstanding balance.
 48. The system of claim 47,wherein the operation of determining whether the customer has made apayment further comprises: determining whether the customer has made thepayment within an acceptable period of time.
 49. The system of claim 46,wherein the operation of modifying the starter credit account parameterscomprises: increasing a starter credit limit associated with the startercredit account and adjusting an interest rate associated with thestarter credit account when the customer has satisfied the predeterminedcriteria during the trial period.
 50. The system of claim 49, whereinthe predetermined criteria include at least one of making apredetermined number of consecutive on time payments, and not exceedingthe starter credit limit.
 51. The system of claim 46, wherein theoperation of modifying the starter credit account parameters comprises:downgrading at least one of the starter credit account parameters basedon the monitoring.
 52. The system of claim 51, wherein the operation ofdowngrading comprises: determining that the customer has not satisfiedthe predetermined criteria during the trial period based on themonitoring; and restarting the trial period.
 53. The system of claim 51,wherein the operation of downgrading comprises: determining that thecustomer has not satisfied the predetermined criteria during the trialperiod based on the monitoring; preventing use of the starter creditaccount to purchase goods and/or services; increasing an interest rateassociated with the starter credit account; and assessing penalty feesto the starter credit account.
 54. A system for providing a creditaccount to a customer of a credit issuer that provides a starter creditaccount associated with starter credit account parameters and a standardcredit account associated with standard credit account parameters morefavorable than the starter credit account parameters, comprising: aprocessor; and a memory storing a set of instructions that, whenexecuted by the processor, perform operations comprising: determining agroup of customers with existing credit histories who have notpreviously applied for the standard credit account and are eligible forthe starter credit account, wherein the customers included in the groupeach have a credit profile that prevents the customers from obtainingthe standard credit account; ranking the customers included in thegroup; providing a starter credit account to each customer included inthe group, wherein parameters associated with each starter creditaccount vary based on the rank of each customer; determining a trialperiod for each ranked customer; determining, for each ranked customer,a predetermined criteria that the customer must satisfy for the startercredit account parameters to be upgraded; determining, for eachcustomer, whether the ranked customer has met the predetermined criteriaduring the trial period; and upgrading, for each customer, the accountparameters associated with the ranked customer based on thedetermination.
 55. The system of claim 54, wherein the operation ofadjusting the account parameters comprises: increasing a credit limitassociated with the starter credit account when the customer has met thepredetermined criteria.
 56. The system of claim 54, wherein theoperation of adjusting the account parameters comprises: adjusting aninterest rate associated with the starter credit account when thecustomer has met the predetermined criteria.
 57. The system of claim 54,wherein the operation of adjusting the account parameters comprises:adjusting the account parameters to reflect parameters equivalent toparameters associated with the standard credit account when the customerhas met the predetermined criteria.
 58. The system of claim 54, whereinthe operation of adjusting the account parameters comprises: restartingthe trial period when the customer has not met the predeterminedcriteria and based on the rank of the customer.
 59. The system of claim54, wherein the operation of adjusting the account parameters comprises:preventing the starter credit account from being used to purchase goodsand/or services when the customer has not met the predetermined criteriaand based on the rank of the customer.
 60. The system of claim 54,wherein the operation of ranking the customers included in the groupcomprises: ranking the customers based on the credit profile of eachcustomer included in the group.
 61. The system of claim 54, wherein thepredetermined criteria include at least one of making a number ofconsecutive on-time payments, and not exceeding a credit limitassociated with the starter credit account.
 62. The system of claim 54,wherein the operation of determining whether the ranked customer has metthe predetermined criteria during the trial period comprises:determining at predetermined intervals within the trial period whetherthe customer has made a number of consecutive on-time paymentsassociated with their respective starter credit account.
 63. A systemfor providing credit accounts, comprising: processor; and a memorystoring a set of instruction that, when executed by the processor,perform operations comprising: receiving a request from a customer for afirst credit account associated with a first account parameters includeda first credit limit and a first interest rate; providing to thecustomer a second credit account associated with second accountparameters including a second credit limit and a second interest rate,wherein the second credit limit is lower than the first credit limit;notifying the customer of a third credit limit while the customer isprovided the second credit limit, the notifying including informationreflecting that the third credit limit is obtainable by making apredetermined number of consecutive on time payments and wherein thethird credit limit is higher than the second credit limit and lower thanthe first credit limit; monitoring the second credit account todetermine whether the customer has made the predetermined number ofconsecutive on time payments; and changing the second credit limit tothe third credit limit when it is determined that the customer has madethe predetermined number of on-time payments associated with the secondcredit account.
 64. The system of claim 63, wherein the third creditlimit is based on a predetermined amount based on a number of on-timepayments made by the customer.
 65. A system for providing creditaccounts, comprising; a processor; and memory storing a set ofinstructions that, when executed by the processor, perform operationscomprising: receiving a request from a customer for a first creditaccount associated with a first account parameters included a firstcredit limit and a first interest rate; providing to the customer asecond credit account associated with second account parametersincluding a second credit limit and a second interest rate; monitoringthe second credit account to determine whether the customer hasperformed at least one of making a predetermined number of consecutiveon time payments or not exceededing the second credit limit; andchanging the second interest rate to a third interest rate that ishigher than the first interest rate, when it is determined that thecustomer has made the predetermined number of on-time paymentsassociated with the second credit account.
 66. A non-transitorycomputer-readable medium storing instructions operable to cause one ormore processors o perform operation comprising: providing the startercredit account to the customer, wherein the customer is not eligible toreceive the standard credit account; monitoring the customer'sactivities associated with the starter credit account during a firsttrial period to determine whether the customer has satisfied firstpredetermined criteria during the first trial period; modifying thestarter credit account parameters based on the monitoring, the modifyingincluding starting a second trial period and upgrading the startercredit account parameters if the customer has satisfied thepredetermined criteria during the first trial period; further monitoringthe customer's activities associated with the modified starter creditaccount parameters during the second trial period to determine whetherthe customer has satisfied second predetermined criteria during thesecond trial period; and further modifying the modified starter creditaccount parameters based on the further monitoring.
 67. Thecomputer-readable medium of claim 66, wherein the second predeterminedcriteria is the same as the first predetermined criteria.
 68. Thecomputer-readable medium of claim 66, wherein the second predeterminedcriteria is not the same as the first predetermined criteria.
 69. Thecomputer-readable medium of claim 66, wherein the operation of modifyingthe starter credit account parameters based on the monitoring comprises:increasing a credit limit associated with the starter credit account.70. The computer-readable medium of claim 69, wherein the operation offurther modifying the starter credit account parameters based on thefurther monitoring comprises: further increasing the credit limitassociated with the starter credit account.
 71. A system for providing acredit account to a customer of a credit issuer that provides a startercredit account associated with starter credit account parameters and astandard credit account associated with standard credit accountparameters more favorable than the starter credit account parameters,comprising: a processor; and a memory storing a set of instructionsthat, when executed by the processor, perform operations comprising:providing the starter credit account to the customer, wherein thecustomer is not eligible to receive the standard credit account;monitoring the customers activities associated with the starter creditaccount during a first trial period to determine whether the customerhas satisfied first predetermined criteria during the trial period;modifying the starter credit account parameters based on the monitoring,the modifying including starting a second trial period and upgrading thestarter credit account parameters if the customer has satisfied thefirst predetermined criteria during the first trial period; furthermonitoring the customer's activities associated with the modifiedstarter credit account parameters during the second trial period todetermine whether the customer has satisfied second predeterminedcriteria during the second trial period; and further modifying themodified starter credit account parameters based on the furthermonitoring.
 72. The system of claim 71, wherein the second predeterminedcriteria is the same as the first predetermined criteria.
 73. The systemof claim 71, wherein the second predetermined criteria is not the sameas the first predetermined criteria.
 74. The system of claim 71, whereinthe operation of modifying the starter credit account parameters basedon the monitoring comprises: increasing a credit limit associated withthe starter credit account.
 75. The system of claim 74, wherein theoperation of further modifying the starter credit account parametersbased on the further monitoring comprises: further increasing the creditlimit associated with the starter credit account.
 76. The non-transitorycomputer-readable medium of claim 8, wherein the operation of providinga starter credit account in place of the standard credit accountincludes: providing the starter credit account in response to therequest for he standard credit account received from the customer. 77.The system of claim 37, wherein the operation of providing a startercredit account in place of the standard credit account includes:providing the starter credit account in response to the request for thestandard credit account received from the customer.